Renault-Nissan CEO Carlos Ghosn has confirmed the company is developing an affordable compact electric car.

He called it a ‘game-changer’ and if, as speculated, the price is under $8,000…well the enigmatic Mr Ghosn may will be correct once again.

Renault actually enjoys a 25 per-cent share of the European EV market with more than 100,000 vehicles sold since 2012.

The company recently unveiled an updated Kangoo ZE electric commercial van which is claimed to deliver a range of 200kms between recharges in everyday driving and the 2017 all-electric Renault Z.E. 40 compact hatchback will go further with a range of 300kms – again in normal driving.

As to the new affordable electric car, Mr Ghosn said this will be a vehicle for the Chinese market.

However it is being co-developed with Nissan so speculation points to a replacement for the Japanese giant’s Venucia e30 – an extension of the current Leaf hatchback.

International media reports suggest the new EV could be a modified production version of the Renault Kwid concept car (pictured) show at the New Delhi Auto Expo back in 2014. While the car shown in India was powered by a 1.2-litre petrol engine, Renault did confirm it had been designed to also run an all-electric powertrain.